If you are setting up a business, hire an expert accountant. There are decisions that must be made at the beginning of your business setup up and an accountant will get these decisions and plans right at the very beginning of your start up. You do need a business agent or accountant to oversee tax affairs according to Inland Revenue recommendations.
If you have a great deal of business experienced, you might be able to be your own accountant. However,being an account will take away time from marketing and establishing customers. A good accountant provides many business services that range from accounting, taxation to advisory services as well as business planning and organization. Do note that your accountant will charge for their services, but if you establish a good working relationship with an accountant, these fees will far outweigh their costs.
There are different types of business structures you can utilize for setting up your business. Use the help of a chartered accountant to advise and help you with different business structures. Let your accountant help you determine if you will be a sole trader, a partnership entity, or a limited liability company.
Limited Liability Company
Under a limited liability you will be a separate legal “person” and have the ability to trade. The legal process is known as incorporation and the company’s name follows the procedures in the Companies Act. The liability of shareholders, owners and directors is limited to their investment in the company. An accountant can give you the rules and regulations to set up a limited liability company and provide you with taxation information as well as business planning.
A partnership involves two or more people signing up to run a business. They share the investment and the management duties as well as the wealth. Profit percentages are predetermined and the debts of the partnership are divided. Write a partnership agreement, record it and file it with the appropriate legal entities. By using a chartered accountant and writing everything down there will be no uncertainties or disagreements. You may only need minimal registration, but you do need to have a contract and your partnership agreement printed. Your chosen accountant can file this agreement in their office and keep it for later review.
As the name implies this is a business with an owner or proprietor who is in control of all aspects of the business. As an owner you are entitled to all profits and losses of the business. You are also liable for the business’ debts. Very few registration formalities are required and you can open up for business almost immediately. You will need the services of a chartered accountant to help you set up your business accounts, develop a financial plan, and determine the best way to proceed with marketing and financing your business.
Use the services of a chartered accountant gives you the freedom to determine what business structure will be best for you. Accountants are there to provide information for registration if needed, writing a business plan, and advise you on the best financial tactics. Use your professional accountant for taxation filing and adherence to all laws that govern businesses. They are the knowledgeable ones.